14. 7

7. The following is an extract from the credit portfolio of Hypothetical Bank: CUSTOMER NAME INDUSTRY Currency Exposure - Less than Less than More than millions 1 year 2 years 2 years 1,167 900 2,333 3,500 1,200 1,100 790 780 300 275 825 527 195 170 263 585 510 680 612 204 197 408 393 590 556 139 200 Customer 1 Construction Customer 2 Building Materials Customer 3 Construction Customer 4 Wholesale and Retail Trade Customer 5 Manufacturing - Cement Customer 6 Wholesale and Retail Trade Customer 7 Wholesale and Retail Trade Customer 8 Construction Customer 9 Manufacturing - Steel Customer 10 Transportation Customer 11 Manufacturing - Auto Customer 12 Construction Customer 13 Construction Customer 14 Construction Customer 15 Wholesale and Retail Trade Customer 16 Manufacturing - Cement Customer 17 Transportation Customer 18 Financial Services Customer 19 Construction Customer 20 Transportation Customer 21 Manufacturing - Paints Customer 22 Wholesale and Retail Trade USD USD GBP USD EUR AUD INR USD USD EUR USD USD GBP USD USD USD GBP USD USD USD USD USD 800 520 800 400 340 347 533 267 312 227 208 280 250 125 417 600 173 267 133 113 104 210 188 94 142 120 116 158 189 160 155 210 Identify the portfolio risks inherent in this portfolio. Explain your views and possible solutions to solve or mitigate the portfolio issues identified